The Labour Government and Access to Affordable Credit-More Spin than Action?

This paper seeks to analyse the Government's policy towards the availability of affordable credit in the United Kingdom (UK). The authors discuss the changing nature of the consumer credit market and illustrate how this has partly contributed to an increase in personal debt, financial exclusion and over-indebtedness. The article assesses several recent initiatives aimed at limiting these problems and improving access to affordable credit. In particular, the paper investigates the impact of the Social Exclusion Unit (SEU or the Unit), reform of the Consumer Credit Act 1974 (CCA 1974 or the Act) and the promotion of credit unions. The authors conclude that the one way in which access to affordable credit can be improved is by enacting legislation, similar to the Community Reinvestment Act 1977 (CRA 1977) in the United States of America (US).